The markets are sitting at a very important spot right now. When you look at the $dxy #usdollar you will see it is sitting at its weekly demand, the $eurusd at its weekly supply and then you have the other dollar pairs sitting at their weekly demand zones as well. It is do or die time right now, meaning that the institutions will either have the weekly zones be respected and use them to fill in the rest of their orders and then we see a continuation of the bigger moves or these weekly zones will be traded through and bigger pullbacks will be in play.
I can tell you one thing, when looking at the #dollar data I can see that this weekly demand was not used to fill in any type of large long positions. With that being noted, when I look at the $usdjpy there has been a momentum shift off its weekly demand zone which I would normally look at as supporting a move upwards on the #dollar but in this case I must remain skeptical because the move upwards on the daily chart left a non 2:1 demand zone behind which tells me there was weakness in the move upwards. Should a nice 2:1 move away have been created and a better formation, I would be leaning toward a stronger dollar.
Have a safe one out there traders; hope this report is helpful to your trading!
Magic Trader!
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